Apartment Market Reaches New Heights
December 8 2022
Apartment sales in luxury developments on the Gold Coast – including those yet to be built – are soaring as a severe shortage of stock drives buyers to secure a prime asset on the beachfront.
Herron Todd White’s National Property Clock report shows the Gold Coast apartment market to be operating at its peak. This is where it is expected to remain in the medium-term fuelled by population growth, housing affordability issues and tight vacancy rates, which boost investor activity and steer demand to apartments as people prioritise location over dwelling type.
In Broadbeach alone, the suburb’s population is expected to burgeon by 62 per cent over the next ten years, with more than 4,500 new homes needed to be built annually to service the rise.
Yet developers say they are already tracking well behind this target, which will lead to higher prices for existing properties and increased confidence in the market.
“Interstate buyers in particular think the Gold Coast market should be slowing, mainly because Melbourne and Sydney have pulled back,” Rob says. “But our prestige apartment market is exceptionally active, with lots of people attending open homes and bidding at auctions, pushing our clearance rate to 80 per cent, well above the national average.
“We are also facilitating a lot of off-market sales, stimulated by demand from buyers who have missed out on listed properties.”
Rob says the apartment market has been ramping up for several years, with the number of annual sales reaching 22,000, compared with 11,000 a decade ago.
There are less than 2,700 homes currently listed for sale on the Gold Coast, which leaves scant availability for an approximate 1,800 people seeking to buy in the city each month.
Annual median price growth for apartments has hit 23.7 per cent, eclipsing that of the rest of the nation, with savvy buyers, who bought off-the-plan in 2020-21 now reaping the biggest rewards, as demand for homes in luxury, well-positioned, residential-only developments rises.
Owners in the boutique Mali building in Mermaid Beach, for example, have seen a huge jump in values with Rob and his team reselling apartments for well above original purchase price per square metre.
No. 802/4-6 Alexandra Avenue was bought off the plan for $8,201 a sqm in 2020, compared with $13,157 a sqm in February, a price gain of 60 per cent.
At 1002/4-6 Alexandra Avenue, an apartment with a larger floor plan sold off-the-plan in 2020 for $10,322 a sqm, compared with $15,587 a sqm in October, marking a 51 per cent price gain.
In the current market, Rob says off-the-plan stock presents excellent value for buyers.
“People are securing properties in luxury projects at 10 to 15 per cent below market value, which is a fantastic incentive, and they will be getting a new product,” he says.
“In Eternity [a luxury development in Broadbeach set for completion in mid 2025] you can purchase a three-bedroom apartment with great views for about $11,000 a sqm, yet apartments in comparative completed developments are selling at $15,000-plus a sqm.
“Even if the market were to shift in the next few years, today’s off-the-plan buyers would still be selling at above market levels.
“Purchasers also have an assurance that they are not overpaying for their asset.”
“For buyers, particularly those purchasing off-the-plan, which differs slightly from a normal sale, we can provide confidence that the project you are investing in is by a proven developer and quality construction partner,” Rob says.
“We hold your hand through every step of the process to ensure all due diligence is carried out and questions are answered in depth and at speed.”
For expert advice on the luxury apartment market and buying off-the-plan reach out to Rob and his experienced team on 0405 608 601.